As Australia becomes more hesitant to permit Chinese companies to mine its rich deposits of essential minerals for green energy, China has turned its attention to Africa. The continent is becoming a crucial source for the metals needed in battery production, particularly lithium, as China seeks to secure alternative supplies for its green-energy goals.
Chinese companies have heavily invested in developing lithium mining and processing operations across Africa, with Zimbabwe leading the charge by producing over two-thirds of the continent’s lithium. New projects are also being launched in Nigeria, Mali, and Namibia.
Africa’s share of the global lithium supply is set to reach 11% this year, a remarkable jump from nearly zero in 2020, and is projected to rise to over 14% within the next three years.
Lithium prices have fallen around 80% in the last two years following a period of high demand, but this is expected to change. The current oversupply is predicted to decrease as global temperatures continue to break records almost every month, intensifying the demand for developed nations to reduce their carbon emissions.
*Africa’s Expanding Role in Lithium Production*
Africa’s lithium production is on the rise, driven by a growing focus on electric vehicles and the expansion of solar energy storage solutions. As more electric vehicles hit the roads and solar power gains traction, Africa’s lithium supply is set to play a critical role. China’s rapid development of lithium projects across the continent has raised concerns in Western nations, but this is not an unfamiliar strategy. In Namibia, Chinese firms previously secured major uranium mines from British and Australian investors when the market was favorable. A similar approach was taken to dominate copper and cobalt resources in the Democratic Republic of Congo. These lithium initiatives are expected to generate tax revenues and create jobs in African countries, while potentially challenging the dominance of major producers in Australia and Chile.
As Australia becomes more hesitant to permit Chinese companies to mine its rich deposits of essential minerals for green energy, China has turned its attention to Africa. The continent is becoming a crucial source for the metals needed in battery production, particularly lithium, as China seeks to secure alternative supplies for its green-energy goals.
Chinese companies have heavily invested in developing lithium mining and processing operations across Africa, with Zimbabwe leading the charge by producing over two-thirds of the continent’s lithium. New projects are also being launched in Nigeria, Mali, and Namibia.
Africa’s share of the global lithium supply is set to reach 11% this year, a remarkable jump from nearly zero in 2020, and is projected to rise to over 14% within the next three years.
Lithium prices have fallen around 80% in the last two years following a period of high demand, but this is expected to change. The current oversupply is predicted to decrease as global temperatures continue to break records almost every month, intensifying the demand for developed nations to reduce their carbon emissions.
Africa’s Expanding Role in Lithium Production
Africa’s lithium production is on the rise, driven by a growing focus on electric vehicles and the expansion of solar energy storage solutions.
As more electric vehicles hit the roads and solar power gains traction, Africa’s lithium supply is set to play a critical role. China’s rapid development of lithium projects across the continent has raised concerns in Western nations, but this is not an unfamiliar strategy. In Namibia, Chinese firms previously secured major uranium mines from British and Australian investors when the market was favorable. A similar approach was taken to dominate copper and cobalt resources in the Democratic Republic of Congo. These lithium initiatives are expected to generate tax revenues and create jobs in African countries, while potentially challenging the dominance of major producers in Australia and Chile.
